when i started saving for my first home, i thought the only number that mattered was the deposit. then i asked, "okay, so i save the deposit, the bank lends me the rest, and that's it?" turns out there is a whole list of other costs nobody had told me about. inspections. a conveyancer. stamp duty. loan fees. by the time i had the full list, my eyes had gone a bit wide.
my dad, John Kefalianos, is a mortgage broker in Adelaide, and a lot of what i learned came from sitting down and asking him. this is the page i wish someone had handed me at the start. it walks through every upfront cost of buying a first home in Australia, in plain english, with rough ranges. none of these are exact figures. but knowing the categories, and roughly what each one runs to, is the whole point. you cannot budget for a cost you did not know existed.
a quick note before we start
i am sharing what i am learning, not giving you personal financial advice. this page is general information only, and everyone's situation is different. when you are ready to talk numbers about yours, the team at Finance Lab can help.
what are the upfront costs of buying a first home?
the upfront costs of buying a first home in Australia usually fall into about eight categories: your deposit, stamp duty, a conveyancer or solicitor, a building inspection, a pest inspection, lenders mortgage insurance (LMI) if your deposit is small, loan and lender fees, and sometimes a buyers agent if you hire one. on top of those, you also need a little set aside for moving, connecting utilities, and council and water adjustments at settlement.
when i first saw that list i felt a bit sick, so here is the reassuring part. some of these are small. a few hundred dollars for an inspection. some are bigger but may be reduced or waived for first home buyers, like stamp duty. and some, like a buyers agent, are completely optional. the trick is to know which is which before you fall in love with a property.
rough guide ranges only, not quotes. costs change, so confirm with the provider before you rely on them.
how much does a conveyancer cost?
a conveyancer in Australia typically costs somewhere around $800 to $2,500 for a standard residential purchase, made up of their professional fee plus government search and disbursement costs. so when you compare quotes, check whether the price includes searches or adds them on top. these are rough guide figures only and vary by state and provider, so confirm a written quote before you budget.
a conveyancer handles the legal transfer of the property from the seller to you. they review the contract, do the searches, calculate the adjustments, and make sure settlement actually happens on the day it is meant to. it is not the place to choose purely on price.
worth knowing
get the quote in writing and ask one blunt question: is this fixed, or could it climb?
hear it on the showwhat happens after you buy a house: the settlement explained how much does a building inspection cost?
a building inspection in Australia usually costs around $300 to $600 for a standard house, though larger properties or combined building-and-pest packages can run higher. the inspector walks through the property and checks the structure, roof, walls, visible plumbing, and signs of past problems, then gives you a written report. treat these as rough guide figures, not a quote.
this is the cost i would never skip. a few hundred dollars on an inspection can save you a great deal down the track, and it is some of the cheapest protection in the whole process. a report might find nothing major and give you peace of mind, or it might find something that lets you negotiate, or walk away.
hear it on the showbuilding inspections 101: how to avoid costly mistakes how much does a pest inspection cost?
a pest inspection in Australia typically costs around $250 to $400 on its own, and is often cheaper when you book it together with a building inspection as a combined package. the pest inspector looks for timber pests like termites, plus signs of borers and wood rot. as with the other inspection fees, these are rough guide ranges only and change over time.
the rule i was given is simple: in most parts of Australia, you get both a building and a pest inspection, not one or the other. termite damage is the kind of thing you cannot see from the open home, and the cost of fixing it can be large compared to the small fee for finding out it is there.
how much does a buyers agent cost?
a buyers agent in Australia usually costs either a flat fee, often somewhere in the range of $5,000 to $15,000, or a percentage of the purchase price, commonly around 1% to 2.5%, depending on the agent and the service. a buyers agent works for you, the buyer, which is the opposite of the selling agent, who works for the seller. these are indicative ranges only.
the honest part
a buyers agent is completely optional. plenty of first home buyers never use one and do perfectly well. for a first home on a tight budget, that fee might be better kept in your pocket.
hear it on the showhow to negotiate with real estate agents as a first home buyer how much do solicitors charge to buy a house?
a solicitor handling a property purchase in Australia typically charges around $1,000 to $3,000, which is often a little more than a conveyancer because a solicitor is a qualified lawyer and can handle legal complications a conveyancer cannot. these figures are a rough guide only.
for most straightforward first home purchases, a conveyancer is enough and usually cheaper. you bring in a solicitor when there is something legally tricky: a complicated contract, a deceased estate, or a property with a difficult title. i cover the conveyancer-versus-solicitor question in more detail over on the settlement and legals pillar.
stamp duty, loan and lmi costs: the bigger line items
now the big ones. these are the costs that dwarf the inspection fees, and they are also the ones where being a first home buyer can change the number dramatically.
stamp duty (transfer duty)
set by each statestamp duty is a state government tax on buying property, and it is usually the largest single upfront cost after your deposit. the crucial thing for first home buyers: many states offer an exemption or concession, so you may pay reduced stamp duty or none at all, depending on your state and the price you pay. the rules and caps change regularly, so do not rely on a figure you read somewhere.
last reviewed june 2026
loan and lender fees. lenders charge various setup fees, which can include an application or establishment fee and a valuation fee, and there may be small government registration fees. these vary a lot by lender, and some may be negotiable or waived, so it is worth asking.
lenders mortgage insurance (LMI). if your deposit is under 20% of the price, lenders usually require LMI, a one-off insurance that protects the lender, not you. it can run into the thousands. some first home buyers may be able to avoid LMI through schemes like the federal First Home Guarantee. eligibility, places, and price caps change, so check the current rules at Housing Australia before you count on it.
a sample upfront-cost breakdown for a first home
to make this real, here is the kind of rough breakdown i was shown when i started. this is a worked example only, not a quote and not a prediction of your costs. i have deliberately used wide ranges, and left stamp duty as "check your state" because for many first home buyers it may be reduced or zero.
| cost | rough range (guide only) |
|---|---|
| building inspection | $300 - $600 |
| pest inspection | $250 - $400 |
| conveyancer (incl. searches) | $800 - $2,500 |
| loan and lender fees | varies by lender |
| LMI (if deposit under 20%) | varies; can be thousands, or nil if a scheme applies |
| stamp duty | check your state, may be reduced or nil |
| buyers agent (optional) | $0, or a flat fee / 1% to 2.5% if you hire one |
| moving, utilities, adjustments | a few hundred dollars |
want a printable version to plan with?
grab my building-vs-buying hidden-costs checklist. free, no obligation.
how to keep your buying costs down
you cannot make these costs disappear, but there are a handful of genuine ways to keep them sensible without cutting the corners that matter.
- get quotes in writing, and compare like for like. for conveyancing especially, check whether searches are included or added on top.
- bundle your inspections. booking a building and pest inspection together with one firm is usually cheaper. just never skip them to save money.
- check your first home benefits before you budget. stamp duty concessions and deposit schemes can change your numbers a lot, but only if you qualify, and the rules change.
- decide honestly whether you need a buyers agent. it is a real, optional cost.
- talk to a broker early. a broker can help you see the all-in cost of a loan, not just the advertised rate.
common questions about the cost of buying a first home
how much does a conveyancer cost in australia?
a conveyancer in Australia usually costs around $800 to $2,500 for a standard residential purchase, made up of their professional fee plus government search and disbursement costs. always check whether searches are bundled in or added on top, and get a written quote before you budget. these are guide figures only.
how much does a building inspection cost?
a building inspection in Australia typically costs around $300 to $600 for a standard house, with larger properties or combined building-and-pest packages often costing more. these are rough guide figures only and vary by inspector and property, so confirm the price before you book.
how much does a pest inspection cost?
a pest inspection in Australia usually costs around $250 to $400 on its own, and is often cheaper booked together with a building inspection as a package. it looks for timber pests like termites plus borers and wood rot. in most areas you get both inspections, not one or the other. these are guide ranges only and change over time, so confirm current pricing first.
how much does a buyers agent cost?
a buyers agent in Australia usually costs either a flat fee, often around $5,000 to $15,000, or a percentage of the purchase price, commonly about 1% to 2.5%. a buyers agent is completely optional. these are indicative ranges only, so confirm the fee structure with the agent in writing.
what are typical buyers agent fees?
typical buyers agent fees in Australia are charged either as a flat fee, often somewhere around $5,000 to $15,000, or as a percentage of the purchase price, commonly about 1% to 2.5%, depending on the service. auction-bidding-only services can cost less. using a buyers agent is optional, so weigh the fee against the value before committing. these are guide figures only.
how much do solicitors charge to buy a house?
a solicitor handling a property purchase in Australia typically charges around $1,000 to $3,000, often a little more than a conveyancer because a solicitor is a qualified lawyer and can handle legal complications a conveyancer cannot. these figures are a rough guide only.
what are the total upfront costs of buying a first home?
they depend heavily on your state, your price, and which schemes you may qualify for. beyond the deposit, plan for inspections (a few hundred dollars), a conveyancer ($800 to $2,500), loan and lender fees, possibly LMI, and stamp duty, which may be reduced or nil for first home buyers. get your own numbers checked rather than relying on a general figure.
do you pay a conveyancer or a solicitor when buying a first home?
for most straightforward first home purchases, a conveyancer is enough and usually cheaper than a solicitor. you generally bring in a solicitor when something is legally tricky, like a complicated contract, a deceased estate, or a difficult title. this is general information only, not personal advice.
what it costs in your city
costs and concessions shift by location. here is what buying a first home looks like in the five capitals we cover in depth:
- affordable suburbs in Sydney
- affordable suburbs in Melbourne
- affordable suburbs in Brisbane
- affordable suburbs in Adelaide
- affordable suburbs in Perth
related episodes
general information only, not personal financial advice. Finance Lab, Credit Representative Number 425945, authorised under Australian Credit Licence Number 389328. scheme, grant and cost figures are explanatory only, change regularly, and were last reviewed june 2026. always confirm current rules with the relevant government source.